Out of state supplier not required to collect and remit Missouri sales tax.
Letter Ruling No. LR6313, Missouri Department of Revenue, dated June 24, 2010, addresses the issue of sales tax on drop shipments. It determines that sales tax is not due on purchases that originate with an out-of-state supplier and are drop shipped to an out-of-state end user.
The taxpayer sold refrigeration equipment to a customer that is a business located in Missouri. The customer directed the taxpayer to ship the equipment to the customer’s out-of-state end user. The equipment was shipped from the supplier’s location outside Missouri to the end user outside Missouri. The customer never took possession of the equipment in Missouri. The taxpayer’s sale of equipment is exempt from Missouri sales tax under §144.030.1, RSMo.
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